McKesson raises annual profit forecast on strength in its U.S. pharma segment
Nov 6 (Reuters) -Drug distributor McKesson Corp MCK.N raised its annual profit forecast on Wednesday, driven by increased sales in its U.S. pharmaceuticals segment on robust demand for specialty and branded drugs.
Shares of the company were up 4.5% in extended trading.
The Texas-headquartered company now expects 2025 profit in the range of $32.40 to $33 per share, compared with its previous estimate of $31.75 and $32.55 per share.
The company reported second-quarter revenue of $93.65 billion, primarily driven by growth in its U.S. pharmaceutical segment, beating analysts' estimates of $89.33 billion as per data compiled by LSEG.
The U.S. pharma segment sells drugs used to treat complex conditions such as cancer and is McKesson's largest unit by revenue.
Sales from the segment rose 23% to $85.7 billion, driven by increased prescription volumes, specialty products, and GLP-1 medications, the company said. Analysts on average were expecting sales of $82.21 billion.
The company had said in August that it anticipates continued GLP-1 medication growth year over year, however, with variability from quarter to quarter.
Drug distributors in the United States are expanding their presence in the specialty medicines market that treats complex conditions like rheumatoid arthritis and cancer due to their high profit margins.
On an adjusted basis, McKesson reported a profit of $7.07 per share, ahead of estimates of $6.88 per share.
Peer Cencora COR.N also forecast 2025 profit above Wall Street expectations after beating fourth-quarter estimates on strength in its U.S. business earlier on Wednesday.
Reporting by Sneha S K in Bengaluru; Editing by Shailesh Kuber
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